• "Helping people through life's transitions."

  • "Helping people through life's transitions."

  • "Helping people through life's transitions."

  • "Helping people through life's transitions."

Do you need a financial advisor?

Reasons to Hire an Advisor

There are several important reasons why consumers outsource planning and investment work to financial professionals

The Professional Alternative

You can invest assets by buying CDs:

  • However, simple strategies do not produce adequate returns over longer time periods
  • Most of the return is eroded away by taxes, inflation, and income distributions
  • In fact, you could end up with a negative

Higher returns require exposure to investment risk. This risk creates the need for financial advice from a competent professional

Your Time

Millions of consumers don’t have time to invest their own assets:

  • They are busy with their professions, companies or retirement activities

For the other consumers, investing their own assets isn’t the best use of their time:

  • For example, Dr. Smith can make more money in surgery than he can doing his own investment work
  • The solution to outsource work to professionals who have full-time responsibility for helping you achieve your financial goals

Your Expertise

Very few consumers have the special knowledge necessary to manage their own assets. They don’t have:

  • Specialized education and training
  • Years of investment experience

Their solution is to hire financial professionals who have the knowledge they need to achieve their financial goals:

  • Thousands of hours of education and training
  • Degrees and certificates
  • Years of investment experience

Your Financial Goals

  • Realizing financial hopes and dreams is the primary reason why consumers hire advisors

They believe advisors increase their probability of achieving the following goals:

  • Quality education for children
  • Improved lifestyles during working years
  • Higher standards of living during retirement years
  • Financial security late in life

Outsourcing Investment Work

Consumers outsource investment work to financial advisors. Examples of the types of work include:

  • Developing financial plans and strategies
  • Developing market outlooks
  • Allocating assets by investments class
  • Selecting managers or investments
  • Managing portfolio risk
  • Analyzing and reporting performance
  • Updating investment strategy

Investment Horizon

Simple asset strategies don’t work when you have long investment horizons

For example, you and your spouse retire at age 65 and one of you lives to be age 95:

  • You have a 30 year investment horizon during which your strategy has to compensate for fluctuating markets, income distributions, inflation, future tax rates, and lump sum distributions

Disciplined Investing

Another reason to hire a professional is discipline. Consumers frequently make emotion-backed investment decisions that produce bad results. The two mistakes are:

  • Selling at market bottoms (they should be buying)
  • Buying at markets tops (they should be selling)

Financial professionals don’t get emotionally involved with client assets – it’s a business

Advisor discipline produces better results over a variety of market conditions

Comparative Results

When consumers say they produce better results than advisors they are usually comparing their returns to lower quality sales representatives who sell investment products

Consumers rarely produce better results than high quality professionals


You have no control over:

  • The volatility of securities markets
  • Investment results that are impacted by fluctuating market conditions
  • Economics variables that are difficult or impossible to predict

You do have control over the quality of the advisor you select

  • You should use an objective selection process that reduces your risk of bad advice and increases your probability of achieving your financial goals
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